A$676,000 cash and 0.97 quarters of funding at Xstate

Diona-1 testing timetable remains uncertain

Xstate Resources Limited (ASX:XST) has reported a sharper-than-expected change in Diona-1’s measured fluid level, while acknowledging that the timing of renewed flowback and flow testing is still unresolved. A static gradient survey recorded fluid at approximately 2,325 metres true vertical depth, more than 1,800 metres below the level measured during earlier flowback operations.

The wellbore above the measured liquid level was gas-filled, and Xstate said the liquid level is now interpreted to sit below the top of the Black Alley/Bandanna perforated interval. The survey also recorded wellhead pressure of about 3,235 pounds per square inch, compared with roughly 1,600 psi when the well was shut in. Maximum downhole pressure reached 4,139 psi at 2,411 metres TVD.

Those figures provide pressure and fluid-level data, but they do not resolve the practical question of when the well can return to flow testing. The timing and logistics of that work remain under review. Earlier coverage of the project had described

Cash runway falls below one quarter on historical spending

Xstate finished the quarter with A$676,000 in cash, down from A$1.248 million at the end of the previous quarter. It reported A$411,000 of net operating cash outflow and A$285,000 spent on exploration and evaluation, producing total relevant outgoings of A$696,000 for the quarter.

On that historical spending rate, the Appendix 5B calculates only 0.97 quarters of available funding. Xstate said the estimate captures the quarter’s Diona-1 activity and does not represent its expected ongoing cash burn, with forecast activity described as significantly lower. The company also expects to realise A$300,000 in receivables during the December quarter.

The funding disclosure is nevertheless a clear constraint. Xstate said it has not taken steps to raise additional cash, although it retains the option of an equity raising for future approved work programmes, subject to market conditions. It expects to continue operating on existing cash, lower forecast activity, reduced overheads and active expenditure management.

ATP2087 adds acreage but remains subject to permit grant

The quarter also points to a second workstream, with Xstate holding 25% of the joint venture selected as preferred tenderer for ATP2087 in Queensland’s 2026 public land release. The Taroom venture includes Amplitude Energy, Beetaloo Energy and Eastern States Energy, each with an equal interest, and the parties expect work to begin in early 2027. Xstate’s

ATP2087 lies on the eastern margin of the Taroom Trough and immediately beside the APLNG-operated Condabri coal seam gas field. The joint venture plans to assess coal seam gas potential early in its proposed work programme. Xstate cautioned that results reported by other operators provide regional context only and are not necessarily indicative of outcomes within the new acreage.